The CEO blamed the economy for the layoffs.
FaZe Clan has laid off 20 percent of its staff, which CEO Lee Trink insists is due to uncertainty in the overall economy and an organizational focus on “financial discipline.”
In a memo sent to staff, Trink said FaZe demonstrated “incredible growth” and that the organization’s revenue in 2022 grew 25 percent year-over-year. He also intimated that he is “optimistic about what’s ahead for [FaZe].”
In July, FaZe became a public company, allowing its stocks to be traded on Nasdaq stock exchange. Since its IPO, FaZes stock has plummeted from a $20 peak to $0.68 per share (at the time of writing), and this occurrence would seem to have forced the organization’s hand.
Our original IPO plans contemplated raising significantly more capital. That capital was intended to fund a strategy where we could take multiple shots at new opportunities. … Over the span of time while going public, we hired staff to execute on those opportunities.
The reduction in staff, FaZe hopes, will help the organization reach its goal of profitability in the near future. FaZes new direction seems to be focusing on discipline in regard to their spending. As one of the leading esports organizations that others try to emulate, this might have a larger knock-on effect than anticipated.
Other organizations around esports, including 100 Thieves, OpTic Gaming, and Riot Games, have already made layoffs, following the lead of many tech companies.